A Modern Application of Hedonics for Valuing Irrigation

Land Economics/Use,

Effect of Water Price on the Multicrop Production Decision: Appling Fixed Allocatable Input Model in Georgia

This study applies the fixed allocatable input model to test the effect of water price on the multiple production decision in Georgia, U.S. The limited dependent variable models are applied and intensive data are analyzed in this study to estimate the decision for crop choice, land allocation, product supply, and water demand functions at crop-level. In order to investigate the effect of water price on crop-level demand, the total water price effect on farm water demand is decomposed the intensive margin and extensive margin.Resource /Energy Economics and Policy,

Use of the Hedonic Method to Estimate Lake Sedimentation Impacts on Property Values in Mountain Park and Roswell, GA

Metropolitan Atlanta has experienced explosive population growth in the past few decades, which has resulted in rapid residential growth. The City of Roswell is one the best examples of residential growth on the urban fringe of Atlanta, with its housing stock increasing by more than 50 percent from 1990 to 2000. Stormwater runoff created from these development sites is expected to be causing sedimentation accumulation in lakes within Roswell and a neighboring, downstream wildlife refuge located in the City of Mountain Park. Because sedimentation tends to fill-in and shrink lakes, our results provide some indication of the potential property damages associated with sedimentation. Furthermore, our results provide evidence that lake value is not monotonically increasing with lake size, which is believed to be due to the influence that geographic, environmental, and social factors have on the degree to which lakes add value to housing prices.Land Economics/Use,

Farm-Level Risk Management Using Irrigation and Weather Derivatives

An agronomic crop growth model—the Decision Support System for Agro-Technology Transfer—and a constant relative risk aversion utility function are used to examine corn irrigation strategies in Mitchell County, Georgia. Precipitation contracts are designed to help farmers manage risk. Three conclusions originate from the findings. First, the optimal irrigation strategy can greatly increase producers’ certainty-equivalent revenue. Second, changes in water pricing policy would have a limited impact on the amount of water used. And third, across levels of risk preference, the precipitation contracts are not effective in increasing certainty-equivalent revenue or reducing cumulative water use.irrigation risk management, water pricing policy, weather derivative contract, Agribusiness, Environmental Economics and Policy, Farm Management, Food Consumption/Nutrition/Food Safety, D8, G22, Q15, Q25,

Irrigated Acreage Projections in Georgia

Irrigated acreage is an important indicator for agricultural water demand which is a major category of water use. Three methodologies were applied in this study to project irrigated acreage of major crops in Georgia from 2010 to 2050. These three methodologies show consistent results. Total irrigated acreage of major crops in Georgia is projected to increase for the next 40 years. The acreage projection results provide useful information for Georgia agricultural policy makers and farmers. However, the methodologies used in the study have some limitations. They can only be used under certain assumptions. Thus, better methodologies are needed for future related research.Irrigated acreage projection, acreage response elasticities, Crop Production/Industries, Environmental Economics and Policy, Farm Management, Resource /Energy Economics and Policy,